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Business
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exchanged between firms and households.†(Begg, Fischer & Dornbusch)
(a) Explain this statement
The circular flow of income is a model of the economy showing flows of goods, services and factors of production among firms and households. The model shows that households supply the factors of production for firms who produce
goods and services in the absence of government and international trade...
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exchanged between firms and households.†(Begg, Fischer & Dornbusch)
(a) Explain this statement
The circular flow of income is a model of the economy showing flows of goods, services and factors of production among firms and households. The model shows that households supply the factors of production for firms who produce
goods and services in the absence of government and international trade...
Essay fragment
General points of the essay
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